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August 9, 2005
Dow 30 reaction to decision on Fed Funds, Tues., August 9, 2005, 2:37 PM
The Fed Open Market Committee did exactly as expected at 2:15 pm ET today. They increased the Fed Funds Rate for the 10th consecutive time, now to 3.50 pct. They indicated that despite higher energy costs, this policy of raising rates to keep a growing economy in check would continue.
Immediately the USD weakened and the Dow 30 made a small move higher. After a jump start to the day, the Dow is now almost at a triple-digit gain.
I'm not sure there is much more jet fuel in this rocket. I think the move to +97 on the Dow is the high point, and that it's down from there.
Posted by Posted by Bill Cara on August 9, 2005 02:37:08 PM | Category: Cara Today in the Market